Question

During the current year, merchandise is sold for $137,500 cash and $425,600 on account. the cost of the merchandise sold is $322,325. what is the amount of the gross sales margin

Answer 1

The gross sales margin equals 42.76%

The formula to calculate the Gross Sales Margin is (Revenue - Cost of Goods Sold) / Revenue

Revenue = $137,500 + $425,600 = $563,100

($563,100 - 322,325) / 563,100 =

240,775 / 563,100 = 42.76%